Category: Real Estate

What to Know About Title Insurance in Real Estate

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If this is your first time dealing with real estate, you might get confused at what a title insurance means. Title insurance is a security that protects both buyers and mortgage from defects or problems in case there is a transfer of property ownership.

Before closing any real estate deal, you must get title insurance as it is a standard procedure. Since this element protects you in case the previous owner didn’t clear ownership of the house. If you don’t want to end up in regret, you shouldn’t neglect title insurance. If you’re working with an attorney, rest assured that you will be appropriately guided.

How To Get Title Insurance

You don’t need to worry yourself, as your escrow or closing agent will kick start getting title insurance. In most cases, your attorney or closing agent will choose your title insurer. The payment can be on the high end, so most buyers often shy away from title insurance.

A onetime fee of $1000 will be requested for title insurance. In most states in the US, the seller traditionally foots the bill. The procedures are standards and most likely to go successful. Most homebuyers often ask if prices are regulated. In many states, they are.

However, there isn’t much of a difference when you compare prices. Look for two factors when seeking title insurance: the quality of insurance and the title search quality.

What Type Of Protection Does Title Insurance Give?

With title insurance, there will be an extensive title search of the property. This practice tends to minimize issues by searching for foreseeable title issues. On the other hand, it protects you from litigation that questions the property owner’s validity or legality.

Is It Essential?

Before you brush title insurance off, you need to know that title insurance has saved insureds massive sum of money. On your own, you won’t be able to detect if the property still has a claim or not. Through title insurance, you protect yourself against unforeseen circumstances that might arise.

As previously stated, title insurance protects you from some ownership claims or even specific errors made while inputting public records. The title check will determine if there are any claims on the property, as such information helps eliminate future issues.

Who Should You Trust?

The best person to look for during title insurance is your lender, not the seller or real estate agent. The lender wants the deal to pull through and will often ensure everything is perfect since the lender is guaranteed a large amount of money.

To be the safe side, you must make sure that you seek professional advice from your real estate attorney. That way, you’re confident of making no mistake.

Conclusion

Title insurance is there to protect you from future property claims. Although it is somewhat expensive, it is for the best. Since real estate comes with complex procedures, mistakes can happen, and your only savior could be title insurance.

What Does A Real Estate Attorney Do?

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If you’re a first time home buyer, you might find yourself wondering what a real estate attorney does. Most real estate buyers or sellers often think that a real estate agent can play the role, but they are two individuals with different responsibilities and functions.

Real estate lawyers or attorneys review real estate transactions, including purchases and leases. In case there is a title insurance issue, they can help resolve such without hassles. If by any chance, something goes wrong, a real estate attorney is ever ready to step in and defend.

  1. Draw Up Documents

A real estate lawyer’s primary role is to draft out documents by preparing deeds for conveyance transactions, rentals, and more. Your real estate agent can help you fill those documents, but it is the job of a real estate attorney to draft and revise these materials.

  • Handle Transactions

When it comes to the rules and regulations guiding the real estate market, a real estate attorney is the best person for the task. A competent real estate attorney knows the ins and outs and can help their clients understand contracts, inspections, leases, and other legal processes involved. If you ever have a question, your real estate lawyer is ever ready to answer and guide you.

  • Negotiate Sweet Deals

Real estate attorneys have closed more deals than you could ever imagine. So, it is always good to leverage their sophisticated experience in the real estate market. You can allow your attorney to handle the negotiation, including the terms and conditions.

  • Engage In Litigation

When a real estate transaction fails to work out, your real estate lawyer must represent you. It often includes drafting legal pleadings to file with the judge. Also, your attorney will be there for your hearing, trials, or any other legal processes. In extreme cases, they could work out a settlement agreement.

  • Protects Clients’ interest

Your attorney can be a preventive measure against hidden legal traps. You can trust your attorney to protect your interest and ensure that the legal documents are authentic. If you’re in doubt, you can always ask your attorney to take a second look at the contracts. In the end, your interest will be protected, and you’ll have no cause of alarm.

  • Assist With Closing

The closing day is the most crucial in real estate transactions. Through your lawyer, rest assured that every purchase will be facilitated. Also, your lawyer can familiarize you with some of the hidden costs and other likely surprises. Since the closing day is the most important event, your lawyer will try to ensure it is successful and have no regret.

Conclusion

If you want peace of mind, hiring a real estate attorney is one of the first things you need to do before any other deals. Your lawyer will ensure your interest is protected, and your chances of making a mistake are also eliminated.

Real Estate Scams You Need To Avoid

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Come to think of it; a house is probably one of the most expensive items most people buy in their life. Since big money is involved, it has become a hunting ground for scammers. There are now lots of creative ways these predators use to lure unsuspecting victims.

By learning how they work or operate, you cut down on the chances of falling victim. As usual, they prey on their victim ignorance and exploit it. If something sounds too good to be true, it probably is. This article aims to expose you to red signs you should be wary of.

  1. Hackers Stealing Your Down Payment

When closing a real estate deal, transactions are often required to seal it off. However, hackers have been known to hijack the process and have you transfer your down payment to an anonymous account. They could do this by sending you an email that contains a harmful malware.

Other times, they could fool you into thinking they are an agent and tricking you into sending him money. To avoid this sort of scam, arrange a home deal where there is zero closing cost. That way, there is nothing to hijack.

  • Fake Rental Listing Scam

This scam is viral, and yet many aspiring homeowners keep falling victim. The issue is because they make it seem so real that people rarely notice. The domain of this scam is online, and it works by reposting legitimate property listings elsewhere to scam their victims.

When you stumble on such websites, they often demand an upfront. The moment you send them money, rest assured you will not see that money again, or the property. To avoid this scam, never wire money to anyone you’re yet to see in person.

Before pushing the button, take another fresh look and verify the details. Go the extra mile and find out if they are even licensed, real estate agents.

  • Title Fraud

This type of real estate scam is very devastating since it takes identity theft while posing as the actual owner with fake documents.  Once they are successful with stealing your identity, they can get a new mortgage against the property, thereby taking the cash for themselves while leaving you with the repayments.

The ideal way to prevent this sort of real estate scam is to ask your insurance to recommend the best policy that offers the best protection against the type of fraud. Also, secure your data, as that is the only way to stop your identity from getting stolen.

  • Unlicensed Realtor Scam

In case you have no idea, this scam affects both you and the realtor. That is why you need to ensure you prevent situations like this by being cautious. This scam works when you find yourself dealing with a fake realtor who deposits the money into their account and not into an escrow.

Conclusion

The only way to mitigate these real estate scams is to be extra cautious and verify everyone and everything you do. In that light, good luck.

Real Estate Investment Books Of 2020

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There is no doubt that the real estate is a goldmine, and not many have exploited its potential. If you’re an aspiring real estate tycoon and you want to get your hands dirty, perhaps you should start with books. 

There are lots of ways to invest in real estates, like investing in real estate multifamily rentals. By investing in investment books, you will have a strong foundation to begin. So, here are books you should give a try.

  1. Rich Dad Poor Dad By Robert Kiyosaki

Robert Kiyosaki did justice by being a guardian to real estate enthusiasts. Through his unique perceptive and comparison between his rich and poor dad, he was able to draw the line between the rich and the poor.

This book is rated as one of the best general reads on investment. There are lots of incredible lessons to learn, and the storytelling is crafted to put you hooked and focused. This book is best for beginners, dummies, or anyone looking to focus on an entirely new field.

  • The Millionaire Real Estate Investor By Gary Keller

Ever considered investing in the real estate industry like a millionaire? You probably have taught about it, but unfortunately, you might not have a million buck lying around. 

That can suck, but “The Millionaire Real Estate Investor” draws wisdom from more than 100 millionaire real estate tycoons. This book is literarily a handbook to wealth.

The common problem aspiring investors face are myths. They don’t know what is real and what isn’t. This book was able to address this issue, this stumbling block stopping many from achieving their millionaire status.

  • ABCs Of Real Estate Investing By Ken Mcelroy

If you’re a beginner with little or no knowledge of the real estate, then get a hold of this book. Just as the title portrays, it covers the basics of real estate investment and how to create wealth.

The book will also guide you on how to find and evaluate properties, negotiation, and some management tips that help. Since the author is already a guru in the field, he can guide you through his book.

  • The Book On Rental Property Investing By Brandon Turner

The author of this fantastic book, Brandon Turner, is a real estate entrepreneur with years of excellent experience. In his book, he explained how one could succeed with rental investment to generate cash flow. This book covers almost everything you need to know as a real estate investor.

  • Long-Distance Real Estate Investing By David Greene

When dabbling into real estate, you will come across myths such as you should look to invest only locally. That way, you can monitor your property. However, this book challenges that myth and uncovers how you can invest without distance posing a barrier.  

If you’re looking to widen your real estate knowledge, then, by all means, try and get this book.

Conclusion

That is all for the best real estate investment book of 2020. With the right knowledge of the real estate market, succeeding becomes inevitable.

5 Common Real Estate Closing Problems

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You dread the thought of it, hoping you will never have to face these inevitable. But nearing that closing deal, you find yourself battling with anxiety. When something out of the ordinary strike, you’re immediately thrown off the edge.

The closing day can be relieving and anxiety-inducing at the same time. Finally, the stress will be over. But then again, what if something happens? In this article, you’re going to learn some common real estate closing problems and manage them.

  1. What Stays And What Goes?

It might not seem like a big deal, until when the new occupant shoves your favorite figurine into a box. This issue is common during real estate closing and can lead to no deal if the situation is not correctly handled.

If the item is not much of a big deal, you can let that slide. But if it isn’t, there are ways to solve the misunderstanding. To ensure something like this never happens, delineate in a contract what remains in the house. Be specific, so there won’t be any misunderstanding.

  • Credit Challenges

Everything might be working pretty smoothly at first, only for red signs to start emerging from your credit scores. There have been cases; even approved mortgages can be withdrawn due to credit score problems.

Perhaps it might have been triggered by a job change, falling behind in paying bills, and even sudden cash infusions. To mitigate this issue, contact your lender day before the closing. You’re doing this to ensure there are no problems. Also, if there were, you would be able to discuss solutions.

  • Title Insurance Issues

Most often, buyers and sellers are often ignorant of what title insurance is and why they are expensive. It could become a problem during the closing day and lead to the deal not going through since title insurance protects both parties and the transaction. Since costs are not often disclosed to buyers and sellers, it could become a problem on the closing day.

  • Uncomfortable Closing Rooms

Although it might sound unlikely, numerous closing deals have failed to pull through due to a cramped room.  If you’ve ever been in a stuffed place, you definitely wouldn’t want that to be the closing day.

There are lots of comfortable conference rooms you can hire. They will have comfortable seating and plenty of places to move around. With this, you eliminate the chances of this ever being a problem.

  • Ugly Walk-Through

The inevitable can happen a day before closing, thereby pulling a surprise stunt as you walk into your property on the closing day. Perhaps there was a massive storm, or maybe a break-in. Whatever be the case, it amounts to one of the top problems of real estate closing.

No matter the magnitude of the issue, you can fix it. Don’t be shy to ask for a look-see after maybe a storm. If all fails, your recovery plan should be asking the seller to cover the cost of repairs.

Conclusion

Being ready for the inevitable has its advantages, as it eliminates surprises on the closing day. If you’re about to close a deal on the house, ensure, you’re one step ahead. Call Chang Legal Today!

Ways to Avoid Illegal Steering

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Steering happens when a real estate agent or broker attempts to guide a buyer from a specific area or neighborhood to another due to race, color, or religion. It is discriminatory and degrades the worth of humans.

For any real estate agent or broker who is ethically conscious, an article like this will guide into avoiding this ill practice. By abiding by such laws, we can live in a society where our differences don’t divide us.

The Fair Housing Act

Illegal steering was very predominant during the 1960s, which lead to the enactment of the Civil Rights Act in 1968. This act made it unlawful to discriminate against anyone based on their religion, race, or national origin. This act further widened to include sex, age, or handicap status.

This law enactment eliminated such occurrences in the real estate market. However, there are still defaults that often span out from ignorance.

How To Avoid Steering

  1. Good Communication

Effective communication is something you should make a priority. Start by listening and understanding the other party. Only then can you establish an understanding. When talking, use simple terms and be concise. If possible, summarize and confirm the information you have. That is to ensure that you’re on the same page with your client.

2. Ask Certain Questions

These tips are all about being specific with your questions. Enquire where they want to live, and narrow it down to the street and road. The responses will help you make a perimeter, thereby leading to a better decision. By having the ideal place in mind, you can avoid steering.

3. Focus On The Property

You need to ensure that every focus is on the property and not on your client’s personality. Work with the features they want, and try to come up with houses with these qualities. Try as much as possible to avoid assumptions and predictions. Your client has to decide where he or she lives.

4. Direct To The Police

If the client wants to look at the crime rate of an area, direct them to the police. Try to avoid making crime statistics, even if you’re sure. Instead, refer them to a reliable source. Stating or assuming that a place is safe is steering.

5. Stick To The Rules

Most often, some clients are persuasive and persistent in their questions. Be adamant and state that you can’t provide such information. Turn them down as calmly as possible, and they will have no choice but to understand.

Conclusion

Steering is a legal issue that could dent your portfolio as a real estate agent or broker. It would help if you played by the rules to avoid problems. Like you already know, legal issues cost money and reputation. In the end, you find yourself in the losing end. That is why you must understand these laws and strive to abide by them.

Guide to Hiring a Real Estate Lawyer

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No doubt, real estate is one of the most significant investments you will ever make. As thus, you might need the assistance of an experienced and reputable lawyer. Since various laws are guiding real estate and property laws, a lawyer becomes a guide toward the inevitable.

If you must hire the right lawyer, you must ensure you follow the tips in this article. They will guide toward identifying the ideal person for your investment.

  1. Ask For Referral

The fact is, there are some families and friends who might have made one or two investments. These are people who you can ask for referrals. They are most likely to recommend a lawyer they have worked with before. If that didn’t work, you could check social media and forums. Who knows, you might find what you’re looking for with just a few clicks.

  1. Check For Experience

Referrals aren’t enough, as you need further assurance. Experience is another crucial factor you shouldn’t fail to include in your checklist.

Get as many referrals as possible, then screen based on experience. The more experience someone has, the better, but that doesn’t mean you shouldn’t look out for potential.

  1. Do Some Research

Before making your final decision, go the extra mile by running the lawyer’s name on Google Search. What kind of online presence does he have? It would be best if you had someone who can represent your investment business in a good light. In other words, they are like ambassadors and able to serve you in legal issues.

In-depth research will further guide you into making a decision you won’t regret. Remember, you need someone who can get you out of trouble.

  1. Contact The Bar Association

Another medium to get connected to potentially great lawyers for your real estate investment is this Bar Association. This body can provide you with a list of lawyers in your area that deals with real estate. You can either call this body or visit their corporate website for more information. No doubt, they will be more than helpful.

  1. Billing

This factor will determine if you’ll get your ideal lawyer or not. If the price is above your budget, look for another lawyer. There is no harm in hiring someone who understands and can work with your budget. There are numerous lawyers out there who are ever ready and able to work with what you have. To many, they believe they can work with a firm from infancy to a giant.

Conclusion

Finding the right lawyer for your real estate investment is an ideal route every investor takes. The benefits of having a lawyer by your side are tremendous, which is why you need the services of one. Although most of them can be somewhat expensive, there are always options that work best with your budget. All it takes is patient and a little research.

Legal Problems Real Estate Agents Encounter

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The laws surrounding the real estate industry are tricky, and so there are always legal issues springing up now and then. However, you can stay afloat all these by being up to date on local state and federal laws.

When you understand what you should and shouldn’t do, you will make a better decision regarding your investments. Here are some of the legal issues real estate agents are most likely to encounter.

  1. Misrepresentation

Many real estate brokers and agents are fond of this, without even knowing. Usually, this issue refers to misstating specifications or features of a property, a claim that is probably false. For instance, stating that the foundation or structure is in excellent condition, whereas it is not is a misrepresentation. You can avoid issues like this by avoiding predictions. Instead, you should use a seller disclosure form.

  1. Non-Disclosure

This issue is different from misrepresentation, but rather the failure to disclose information. When a real estate agent fails to disclose a property’s condition, he has defaulted in this law. This type of legal issue might include unpermitted renovations, environmental concerns, easements, etc. By using the disclosure forms, you can avoid situations like this.

  1. Discrimination

Numerous housing laws protect classes of people from different levels or spheres. The codes might not be the same in every state; the judgment emerging from such a case can be expensive. Discrimination can occur when you make listing statements that are inappropriate, like “This house is perfect for black couples.”

Since laws are always changing, it is paramount you stay up to date to these housing and discrimination laws. Possibly, you can pursue an education toward such a field to know more. As a real estate agent or broker or investor, such a piece of knowledge will always come in handy.

  1. Environmental Hazards

When you fail to address some environmental issues in your property like lead paint, contaminated water, or asbestos, someone can sue you. You must know how to solve problems like this in your property before leasing or selling them off. It will help ensure there is no loss of life or property.

  1. Misleading Publication

Every internet listing or newspaper advert must be factual and not misleading. You cannot mislead a potential buyer to a house he or she has no intention of purchasing. Every real estate agent or broker abide by codes of ethics, which help to make sure there is no issue whatsoever.

Conclusion

By knowing most of these legal issues common in court today, you will do your best to avoid them. With a competent and reliable real estate lawyers, your chances of beating such issues widen. Above all, you should strive to ensure you don’t make any mistake or go against the codes of ethics.

Legal Tips When Investing in Real Estate

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Real estate investment is an industry that can make you a millionaire, but it doesn’t come with a manual. Most projects you will undertake might often base on trial and error to get it. However, there are some tips that, when implored, will make a massive difference in your portfolio. If you’re interested in learning about these tips, read on!

  1. Diversify

Every entrepreneur and investor will tell you that diversity is the key to wealth. The more streams of income you have, the wealthier you become. In real estate investment, that assertion holds. You don’t just build a house at your backyard and call it a day. You can expand; invest in other states or cities. Plan on diversifying your income, so you won’t depend only on one source of income.

  1. Hire A Professional Accountant

The job of an accountant is not only to provide you with tax figures but also to provide you with ways to make more profit from your investment. Also, they help you with financial and taxation laws, ensuring you don’t drown. To succeed in the real estate world, you can’t joke with the services of an accountant.

  1. Contracts That Guide Your Investment

Life is somewhat like chess, and you always have to be ahead of your game. Being ahead of your game will entail ensuring you have contracts that protect your investments. A lease agreement is not the only way to protect yourself, as other methods include the indemnity agreement. This unique agreement serves only two purposes, removing you from liabilities if the tenant is harmed or died in the property.

  1. Never Stop Learning

As an investor, learning is an aspect you must not do without. The day you stop learning, there will be issues. Stay up to the date to the latest real estate developments, and never stop learning from the experts. That entails investing in books, seminars, and events that allow you to learn. The more you discover and devour information, the better investor you become. Data is crucial in every decision making, and having a lot of it can help make critical business decisions regarding taxes.

  1. Insurance

There is always a need to get insurance for your properties. That will ensure that you’re prepared for any accident that might occur. There is nothing that strikes a real estate investor harder than a lack of insurance. Make sure not to fall into this pit, as it is dark and depressing. Before a deal is closed on a house, make sure that insurance is part of the contingencies.

Conclusion

There are lots of overwhelming tips out there on real estate. The most important of all will be having a lawyer by your side. With such a formidable force, you’re sure to scale through any crisis or issues. Real estate investment is a lucrative goldmine, only if you play the ball well.

THINGS TO NOTE AS A FIRST TIME HOMEBUYER

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You are about to own your first home, you are excited! It’s a whole new experience and you can’t wait to get started. But first, there are a few things you must know before you dive in headfirst. Buying a new home can be an overwhelming experience, more so when it’s your first time. You might be tempted to make a quick buy when you see homes going off the market in mere weeks and seemingly attractively priced homes. Unfortunately, making such a mistake might cause a strain on your financial goals. You sure don’t want to keep paying a mortgage when you are retired. 

As they say, what is worth doing, is worth doing well. You want to get it right the first time. Don’t anyone trick you into believing that you can’t buy a home you love at a great price that won’t hurt you financially. Here are some tips to make your first-time home purchasing a happy one.

  1. Be Debt-free and Have An Emergency Savings Fund
    Owning a home is great but it comes with its own dose of responsibility. When you do an initial calculation, it may be cheaper than paying your current rent or at the same rate. However, you would need to also put into consideration that the home is now your full responsibility, meaning you are now responsible for utilities, maintenance, etc. You don’t want to have debt while trying to set up your new home. Do be mindful of your spending though. You want to be debt-free and stay that way.
  2. Calculate What You Can Afford
    Before you start house hunting, determining what you can afford. It’s easy to fall in love with a house at first sight, just make sure that the house is within your budget. Calculate your monthly budget to help you determine the price range of a house you can afford. Keep in mind other costs such as housing costs (tax, insurance, etc.). These costs should not be more than 25% of your monthly take-home income. Insurance and homeowners tax vary, so endeavor to factor that in when determining your price range.
  3. Save For A Down Payment
    Not everyone is capable of paying the total price of a house up front, and that’s ok. However, if you can’t pay all at once, ensure you have at least 20% for a down payment. You may be thinking of going for private mortgage insurance or first-time homeowner program, they may sound great, but they cost you more at the end. Whatever plan you choose, ensure you are not in debt for longer than necessary. 
  4. Find A Home In Your Price Range
    Searching for a home in your price range helps you save time and effort. You also don’t get emotionally attached to homes you can’t afford. Search for homes in your range online and send them to your real estate agent. Your real estate agent now knows what you want and can find suitable homes that meet your criteria.
  5. Find a Neighborhood
    Finding a home in your price range is great, however, finding it in a great neighborhood makes it even better. You want to find out about things like crime rate, types of schools, how long your commute would be to work, supermarket, or hospital. Visit the neighborhood at different times, on different days to check the level of traffic, noise, and friendliness of neighbors. Your new home should be comfortable for you and your family. 

Buying your first home is a huge step and you sure want to get this right. A real estate agent can help you make the process easier and see the deal to a favorable closing.